Export Companies: "Korea's Digital Competitiveness Scores 70, Our Company Only 46.7"

Korea International Trade Association International Trade and Commerce Research Institute Survey of 329 Domestic Export Companies
"Support Policies Needed to Strengthen Digital Competitiveness of SMEs to Outpace China"

[Asia Economy Reporter Kim Hyewon] It has been revealed that our export companies evaluate their own digital competitiveness at a low level. Amid this, there is concern about China’s rapid pursuit, leading to calls for expanded support policies to enhance corporate digital competitiveness.

According to a survey conducted by the Korea International Trade Association’s International Trade and Commerce Research Institute on 329 domestic export companies regarding the ‘current status of corporate digital environment and competitiveness,’ Korean export companies rated Korea’s digital competitiveness highly at 70.1 points, but rated their own digital competitiveness much lower at around 46.7 points.

When asked, “How important is securing digital competitiveness for corporate growth?” 72.9% of respondent companies selected scores of 80 or higher, recognizing the necessity of securing digital competitiveness. However, they answered that their own digital competitiveness was weak due to reasons such as ‘lack of personnel’ (25.9%), ‘lack of investment’ (21.3%), ‘lack of research and development’ (14.9%), and ‘absence of management strategy’ (12.3%).

Additionally, companies expressed concern over China’s rapid acquisition of digital competitiveness. When asked to judge the current situation with scores below 50 indicating ‘concern’ and 50 or above indicating ‘opportunity,’ 59.9% of companies gave scores below 50, with the overall average score being only 38.5. Specifically, they worried about ‘intensified competition in the global market’ (47.2%) and ‘intellectual property infringement’ (33.6%).

China’s pursuit is also reflected in the ‘Digital Competitiveness Rankings’ recently published by the International Institute for Management Development (IMD) in Switzerland. South Korea’s digital competitiveness ranking rose from 14th among 64 countries surveyed in 2013 to 8th in 2020, but slipped to 12th in 2021. Meanwhile, China narrowed the gap significantly, moving from 38th in 2013 to 30th in 2018 and 15th in 2021.

The report stated, “South Korea’s digital competitiveness remains high, ranking 3rd among countries with populations over 20 million after the United States and Taiwan, and 4th among Asian countries after Hong Kong, Singapore, and Taiwan,” but also pointed out, “To widen the gap with competitors such as Taiwan and pursuing China, more support is needed for companies to secure digital competitiveness.”

In the survey, companies identified big data technology (29%) as the most necessary digital technology for future digital competitiveness enhancement, followed by artificial intelligence (19.5%), Internet of Things (16.5%), and 3D printers and robots (11.6%). For government support to secure digital competitiveness, they cited research and development (30.7%), digital transformation (27.3%), workforce training (23.8%), and corporate consulting (16.6%).

Researcher Cho Sungdae of the Trade Association said, “To bridge the digital gap at both the national and corporate levels, as well as between large and small-medium enterprises, and to enhance South Korea’s digital competitiveness, the public and private sectors must work together to strengthen human infrastructure and establish laws and financial systems conducive to startups and business.”

This content was produced with the assistance of AI translation services.